The Politics of Fiscal Policy

Daily Recap

World stock markets were almost all lower today, with the focus again on the future of interest rates, per Janet Yellen's comments tomorrow, and the limitations of monetary policy. More and more big names are lining up on that latter side, and today the head of Germany's largest bank, John Cryan, suggested that instead of "making the European banking system safer" negative interest rates (a.k.a. monetary policy gone nuts), could have "fatal consequences." One is that banks and pension plans cannot meet their obligations.

Interestingly, a report from the Pew Charitable Trusts came out shortly before the NY close, citing a $1 trillion shortfall in pension assets relative to their obligations as of 2015. 2016's low and negative rates surely won't be helping that.

But today, rates and bonds were little changed, as was the US dollar index. Oil was up half a buck, trading at $47.30, but the metals ... Log in or subscribe to continue reading.

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